Economists warn of increasing Iraq 's debt and "deal" with the Gulf states , "rejected" the Paris Club standards


2016-10-09 19:00:00 | (Voice of Iraq) - Baghdad

He warned an economist, on Sunday, to increase Iraq 's debt ratio of the GDP being designed to cover the consumer or operational expenses, while reducing economic adviser to the risk that debt because the internal or "unrecognized" majority, criticized another expert not to issue the concerned authorities data allow fundamentalist understanding of the financial position and the size of the debt, calling on parliament to "beware of the debt of Gulf states that have not agreed to accept the standards of the Paris Club."

The economist said Majid picture, " The number of Iraqi and foreign sources confirm that Iraq 's internal debts amounting to up to 43 trillion dinars and external limits of $ 70 billion, excluding labeled Balqdhirh debt, related to Saudi Arabia and the UAE," returned to " the rising debt on the current rates can result in a significant risk to the Iraqi economy, the fact that GDP is 79% debt constitutes 77% of it. "

He added the picture, that "the countries that exceed the size of the debt ratio of the total domestic production, enjoying a strong economy and a more productive loans, not consumer , " noting that " the seriousness of Iraqi debt that is mostly intended to cover consumption expenditure or operational."

For his part , economic adviser Kazem al - Hassani said, " The special Iraqi debt the size of the numbers, is not accurate," pointing out that "most of those debts internal and not external, taken from Iraqi banks means they government."

He said al - Hassani, that "there are two types of external debt, new and old relate to the stage before 2003, the Paris private debt and compensation Kuwait , " noting that "Iraq 's debt to the Gulf countries are not originally unrecognized debts."

The al - Hassani, that " the debt is usually within the agreements between states , but Gulf debt is recognized by the Iraqi side because they did not come into agreement with them, with the exception of Kuwait being covered by United Nations resolutions and the UN Security Council, for compensation, not debt."

In turn , he said the economist Ahmed Rehn, said that " the concerned authorities have not issued during the past three years, fundamentalist data attached to the budget, allows to understand the financial situation in Iraq and the size of the internal and external indebtedness , " stressing that " the concerned authorities should have issued detailed data on domestic debt and those owed to other countries and international financial institutions and even that did not pay dues Iraqis and foreign contractors , constitute another form of debt. "

He called Rehn, the House of Representatives, to the "attention to the debt of Gulf states not recognized by Iraq, because those countries did not agree to accept the Paris Club standards just like the other foreign countries, and has so far refused to deal with the criteria for the club."

The Investment Committee parliamentary expressed in the (18 August 2016), for fear of not fulfilling Iraq 's ability to pay its debts, especially obtained recently, as a result of the continued decline of oil prices with the budget shortfall and the costs of the war against the (Daesh).

It is noteworthy that the government of friendly countries and international banks negotiate to get a long - term soft loans, amounting to about $ 30 billion.

This comes as a result of the lack of lending financial state revenues and the lack of productive sectors alternative for oil reliable despite the existence of economic fundamentals , which can be utilized to maximize the financial resources of the state.

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